Jim Cramer looks at many metrics as he decides where to put money. And in the case of this tech firm, he's spotted something very bullish.

"They're taking market share left and right," the "Mad Money" host said, as he explained why he thinks Lam Research may have as much as 20 percent upside.

Largely Cramer thinks that, as a maker of equipment that's used to produce semiconductors, Lam is in the sweet spot as the technology industry moves to a new and smaller generation of chips.

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"Lam makes equipment that's used to produce semiconductors, especially plasma etching machinery that's basically a super high-tech way to carve into a silicon wafer, removing material and ultimately creating the features and patterns of a given chip," Cramer explained.

As the industry migrates to new and smaller chips, Cramer says this kind of machinery is becoming essential. And it appears more semiconductor makers prefer the equipment made by Lam.

Cramer believes recent earnings confirm the bullish outlook.

"Lam earned $1.26 per share, an 8-cent beat, on top of record revenues that climbed 10% just from the previous quarter; the analysts were only expecting a 9% increase," Cramer said.

"Also, the company reported record shipments, up 11% year over year. And, on top of that, the company gave pretty darned bullish guidance for the next quarter and the rest of the year," Cramer said.

Results such as these would be enough to captures Jim Cramer's imagination, but he says there's more.

"Even after the earnings rally, the stock still sells for just 12 times earnings, a discount to where it's traded historically," Cramer said.

All told, Cramer believes Lam has the wind at its back. "I wouldn't be at all surprised if this $58 stock is headed for $70 in the not too distant future. $58 is just way too cheap considering all the opportunities."